The mechanism of the capital increase Holy Grail brings the opposite effect from trades
Make trades that have the opposite effect
Similar to a betting system
Similar to a time strategy
Reverse Martingale
D’Alembert
Napkin Martingale once
D’Alembert Napkin Martingale once
D’Alembert reverse Martingale
D’Alembert High Return
Reverse D’Alembert High Return
12 hours and reservation
Binary central strategy and external strategy
Up and down becoming highly leveraged is rare
Except for partial selling, everything else is a fixed 2x return
Take risks with returns 2x; keep losing
Betting system
Wait for time, trading strategy
If you think about this, you can create the holy grail
High-leverage D’Alembert
Low-leverage reverse D’Alembert
Profit with D’Alembert
Win rate: reverse D’Alembert, reverse Martingale
High return with D’Alembert, reverse D’Alembert
Range: D’Alembert
Trend: reverse D’Alembert
Low win rate: D’Alembert
High win rate: reverse D’Alembert
High-win-rate trends: reverse D’Alembert
When losing repeatedly, D’Alembert
When winning repeatedly, reverse D’Alembert
Profit comes from reverse D’Alembert
Because of returns, use D’Alembert
Reverse Martingale ends when you lose
Reverse D’Alembert ends in profit if you stop immediately when you lose
If you adopt the form of reverse D’Alembert, profit will always remain
Reverse D’Alembert becomes favorable from 1:3 or more
1:2 is from the third round
Roulette has no 1:3 payout by rule,
but depending on betting, you can simulate the payout
No matter if it is trend-following or contrarian
Pyramiding is being performed
The market is
Horizontal or angled
Contrarian with a horizontal pattern
Contrarian with an angled pattern
Trend-following with an angled pattern
Contrarian D’Alembert napkin
Trend-following reverse D’Alembert pyramid
Contrarian D’Alembert napkin → trend-following D’Alembert pyramid
From equal distribution
It is absolutely better to use D’Alembert
Napkin and pyramid should use limited repetitions of D’Alembert
Other than D’Alembert is unnecessary
Even equal distribution has a high failure rate
D’Alembert is the best method
20
210
30
465
40
810
50
1265
D’Alembert
0.1%
0.01%
Clear losing spots
Unclear losing spots
Inverse indicator of this
Trend-following pyramid
Reverse D’Alembert napkin is effective on the 4th or 5th try → trend-following D’Alembert pyramid profits begin around 80–100 pips
If contrarian fails → breaks out, trend-following succeeds
If trend-following fails → staircase-like trend
Just make it a pyramid logic and profit
Without considering losses
If you keep adding trend-following pyramids steadily, profits will eventually grow
Ladder
1 → 2
2 → 3
3 → 4
If you incur a loss, take a day off
FX
Time wait + reserved trades
12 hours, 6 hours, 3 hours
Napkin D’Alembert
1 → 2 → 3 → 4
Add
4 → 3
If profits were made, return to 1
If it reaches 1% or more at 0.1%, take profit
Return to 1 immediately after 10x profit
Ladder is more efficient with initial equal distribution
Return is 2x, so D’Alembert loses its meaning
Regarding stop loss
Consider it in terms of win-rate convergence
According to prospect theory, winning consistently means
It simply means doing trend-following pyramids
In ladder, if it goes against you, you cut loss
That is prospect theory and capital increase
Absolutely cut losses
Continue equal-distribution logic
Ladder is just equal distribution D’Alembert napkin 1→2→3→4, only one set
FX uses D’Alembert napkin until profits exceed 1%
Do not break the market view
After a certain time, if your market view is stable, trade again
Difficult
↑
That's because you have a stop loss
If you have a stop loss, it’s naturally difficult
If you time it wrong, you just cut losses
It doesn’t grow
↑
Because you’re napkin-ing
If you put on a stop loss, you’re bound to lose
Thinking stop loss is a cut loss means you will lose
Rather than low-leverage napkin
Low-leverage hedged D’Alembert Martingale is better
In practice, low-leverage pyramiding increases
From the market, you must realize profits in a temporary view
Napkin should be in view, otherwise different
In reality, stop losses aren’t usable unless mainly trend-following
Only aim for high returns
Contrarian trades are troublesome because once they mislead, you don’t admit a reversal
If you admit it and it reverses, you’ll get trapped
If you’re napkin-ing, it’s better to napkin with D’Alembert napkin
High returns allow you to recover losses quickly
Why napkin-ing is bad
Napkin-ing cannot respond after a loss
Also, you just pray for success after more napkins
During that time, profits could appear
Better to employ hedged D’Alembert or D’Alembert napkin
Also, although markets have the concept of ranging, that is a myth
Markets do not have a ranging phase from the start
Markets end with a concept of trends
It’s best to think of trend markets and Dow Theory as the operating framework
Ranging and trending are the same in that you focus solely on trading according to Dow Theory
Do not trade with false concepts like support-resistance or range
The market is defined by trends
Prices move according to Dow Theory, nothing more
Only remember trend markets and Dow Theory; everything else is unnecessary
All aspects of trendlines, support/resistance, and breaks exist within Dow Theory
If you think with Dow Theory
Movements inside support/resistance are false concepts
Actually, only external movements exist
The market has only trends
Range markets are only a perception of weak trends
Do not consider support/resistance
If you think about support, resistance, range, or trend, you will be swayed by the market
The market is only trends and you should
Trade by focusing on price movements as points
All market recognition is a lie
Only patterns currently present exist
Only the current trend exists
You only need to view in points; that perspective is enough
If you hold that expectation, you will lose just by following the overall market flow
The overall market is irrelevant
If you only hold the concepts of trend and Dow Theory
You will naturally be trading with the overall market flow
If you elaborate on it, you will just lose
The contrarian concept is built on the same concept as range
Therefore trading contrarian will only lead to losses
In reality, only trend and Dow Theory are everything about the market
The market should be painted with only trend and Dow Theory concepts
Reassess that ranges are a weak trend
Reassess that price moves outside support/resistance
Contrarian is against the trend
It is not about timing and trading
In fact, you should hold a concept of repeatedly doing trend-following based on the trend’s movement
As the market moves
You realize contrarian has no edge
There is no edge in trend-following either, but even less so in contrarian
Because contrarian involves range concepts and napkin concepts
Reason why I hate contrarian
Because it depends on timing
So it becomes trend-following or trend recognition trading
From the start, you are not trading with contrarian concepts
Logics are all useless
From the start, it’s better to strip all of that away
Better to understand the prerequisites for capital increases
Market movements are
Not boxes or ranges
Cycle of trend and Dow Theory
Why napkin pyramiding cuts losses
Because losses are kept minimal
And profits afterward are maximized; that’s all
As a method to profit with ladders
It is an inverse indicator of Napkin Martingale, but
It can only be constructed as trend-following pyramid Martingale
Hedged trend-following pyramid
RSI
William
Envelope
Start pyramid as is
Where you place the stop loss doesn’t matter
In the end, the pyramid wins
If you simply set a napkin limit against the trend,
you end up losing in the end
Analysis method equals waiting for time
24 hours delays trend formation
Test with 12 or 24 on a daily chart
5:1
Napkin and pyramid
If a stop is in place, profits eventually grow and succeed
Napkin and pyramid
If you keep reserving, you’ll lose
Manual and reservation
No difference
Reservation (napkin and pyramid spreading by 10 pips) will only lead to losses
Set up to three times
Trend
3-hour wait
Range
12-hour waiting reservation
Contrarian
Without a planned trade, you’ll lose
Only trend-following consistently yields profits
Technical analysis does not function
Trends are staircases, angles, or boxes; nothing else
If the market moves moderately
It will move like trend-following analysis, but
There are patterns, and a breakout from those patterns shifts the market
Therefore, time-waiting is still more efficient
Only three things
Strong trend
Unequivocal trend
Unequivocal range
Reverse indicator trades are almost impossible to replicate
So just commit to trend-following
Profit per shot is constant
Pyramiding without a stop means all profits
If napkin trading can be entirely traded by market sense
It would absolutely grow, but if you could do that, you wouldn’t be struggling
Only trend-pyramiding would remain
Pyramiding without actually pyramid-like execution
Hedged D’Alembert trend-following
D’Alembert allows for easy partial take-profits
Just follow the trend-following pyramid or napkin with the market